The Influence of Technology-Related, Market-Related, and Standards-Related Strategic Signaling During a Standards War

Abstract

To increase their likelihoods of product-market success, innovating firms use strategic signals to communicate with market participants in order to reduce participants' perceived uncertainties associated with their innovative products. We examine, during a standards war involving a technology-based product, the influence of technology-, market-, and standards-related strategic signals on the stock price of one of the product-market's technology leaders. A technology leader is defined as a firm that develops and promotes its proprietary product design to become industry standard. Using event study methodology, we find that a technology leader's market-and standards-related signals have significant positive influences on this leader's stock price; competitor technology leaders' technology-related and standards-related signals have significant negative influences, while these competitor leaders' market-related signals have a significant positive influence; and competitor technology followers' market-and standardsrelated signals lacked significant influences, while these followers' technology-related signals possessed a weak negative influence.

The effects of platform as a technology standard on platform-based repurchases

“…This is widely known for de facto standards, sometimes called dominant design, in terms of strategic management (e.g. for recent perspectives on dominant design, see Brem et al , 2016; Dao and Zmud, 2015). As an outcome of the competition or standards war, the winning technology is considered a standard and is adopted by many consumers.…”

Statistical Technology Analysis for Competitive Sustainability of Three Dimensional Printing

“…[2,6,[23][24][25][26]. In this paper, we apply statistical modeling to technology analysis between the competitive companies of Stratasys and 3D Systems in 3D printing domain.…”